Savvy Trades and Investments

[cliffvb]

BZH is up 10% today on top of recent gains. Looks like an analyst raised their price target and rating on this home builder. Day late and dollar short as usual. BZH remains cheap with a PE of 4 and well under book value (.77x P/B). The only one I know of that is cheaper is LSEA with a P/B of .52.

I did lighten up on the group earlier this year because I had become very overweight the group. I am still overweight and even more so with the run up in the group. Largest holdings are in CCS and MHO and with more in BZH, TOL, TMHC, MTH, LSEA, and PHM. Good times are rolling for the Builders despite a big increase in mortgage rates with a shortage of about 1.5 million housing units that can only be filled by new construction. Their outlook can continue to be bright for years.